Fund Choices

billy78

Hi all,

Just wanted to get some thoughts on my provisional ISA fund choices.
Looking for 20/25 year term, drip feeding anywhere between £50 to £150 per month into it. I know I obviously need to alter and switch to suit changing markets and my goals, but initially this is what i've come up with.
I've split as follows:

Blackrock Uk absolute Alpha acc 15%
Aberdeen emerging Markets acc 20%
Schroder Global Emerging Markets acc 15%
Invesco Perpetual High Income 18%
Aberdeen World Equity acc 17%
Schroder Global Equity Income acc 15%

My aim in long term growth, I'm happy to take the risk of emerging markets etc.
Wondering whether anyone might suggest (not advise!) alternatives that they would consider more suitable??

Thanks all, Bill.

RubyBish

I would not bother having two funds in the same sector (especially when your are drip funding with these numbers).
So lose one of the emerging markets and one of the Global Equities funds.
It will make it a lot easy to track your perfromance and weightings.

This doubling up suggests to me that you are either selecting funds above your risk profile and you are trying to hedge your bets, or you dont understand the difference between acc and inc, or that you could not find any disernible differences between them during your research.

If after comparing the fund manager history, the securities held, the target index and the cost there is still no difference between two funds, then toss a coin. Once you have compared them more thoroughly you will find you will never have to leave it to chance.

Lokolo

I've got 2 global growth funds... but geographically they invest in different areas. One is heavily based around USA and UK whereas one is Americas and Asia..... surely thats not stupidly doubling up? (I don't know if this is the OPs case or not...)

billy78

Hi RubyBish,

Yes, i doubled up in an attempt to spread the risk.
I've written the choices out with one fund in each sector, then two in each, then back to one wondering which is the most effective (hoping!) way to invest and diversify my risk.
Is it then preferential to choose one fund in each sector - ie, emerging markets, global, etc?

Regards, Bill

wombat42_2

Personally i would trim some of the global and emerging market funds and stick some in Marlborough ETF Commodity fund. There are several good things about this:
- it invests purely in commodities so it is not part of the equity asset class and is likely to operate differently (sometimes as a hedge doing the opposite of the equity market)
- there is a lot of upside potential in commodities if you are prepared to stick it out for bout 10 years.
- it is one of the very few actively managed commdity funds so it will cover the complete range of commodities and continually adjust the specific allocation
- The funds objective is to beat the commodity CRB index which it always has, yet the fund will put up to about 50% in cash to reduce losses (such as last year) also the fund allows shorting so money can be made in a fallling market.

Lokolo

wombat f off. stop advertising that damn fund lol.

wombat42_2

Lokolo wrote: »

wombat f off. stop advertising that damn fund lol.

Well I like it and i have my money where my mouth is but i also fancy:

Blackrock Gold and General
Eclectica Agriculture
Sarasin Agrisar
Baring Global Agriculture

But they are only for long term investors